If the MPC is 0.80 and disposable income increases from 32,000 billion to $37,000 billion, then consumption will increase by: A.
1 answer:
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Answer:
$671.92
Explanation:
Note: The full question is attached as picture below
Product R3
Labor-related cost = 40736/7200*5400
Labor-related cost = $30,552
Production orders = 65970/1600*1000
Production orders = $41,231
Order size = 433175/7100*3100
Order size = $189,133
Total overhead = Labor-related cost + Production orders + Order size
Total overhead = $30,552 + $41,231 + $189,133
Total overhead = $260,916
Annual production and sales of Product of R3 = 900 u nit
Overhead cost per unit = Total overhead / Unit
Overhead cost per unit = $260,916 / 900
Overhead cost per unit = $289.92
Direct material = $226
Direct labor = (26*6) = $156
Unit product cost = Overhead cost per unit + Direct material + Direct labor
Unit product cost = $289.92 + $226 + $156
Unit product cost = $671.92.
